For City Council Meeting [July 13, 2021]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Michael Tahan, Interim Public Works Director
Title
Request City Council Approve a Multi-Year Services Contract with and the Issuance of Annual Purchase Orders to Daniel’s Tire Service for Goodyear Branded Tires in the Not-to-Exceed Amount of $55,000; and Approve a Multi-Year Services Contract with and the Issuance of Annual Purchase Orders to Parkhouse Tires, Inc. for Firestone Branded Tires in the Not-to-Exceed Amount of $45,000 for City Fleet Vehicles, Police Department Vehicles and Fire Department Apparatus Tires, Related Products, and Related Roadside Services for Fiscal Years 2021-2022 through 2025-2026.
(ACTION)
Body
BACKGROUND
The Public Works Department maintains all of the City’s facilities, parks, streets, storm drains, and fleet of vehicles. As maintenance work is scheduled, City staff obtains supplies and materials required for the work from various vendors. The stock of supplies is initially purchased from the respective vendors using an inventory account. As supplies are issued and used on the vehicle fleet, the respective department expenditure accounts will be charged and the inventory account is reduced as the costs are incurred.
The supplies needed are vehicle tires and roadside services. As part of ongoing maintenance efforts, the Public Works Fleet Division services an active fleet of approximately 441 vehicles, 42 Fire Department vehicles including firefighting apparatus’, in addition to Police Department vehicles and other equipment. Due to specific requirements, there is a No Plug No Patch policy in place for all emergency response vehicles.
On October 13, 2015, Council awarded a bid for Goodyear Branded tires and related products to Daniel’s Tire Service and Firestone branded tires and related products to Parkhouse Tires for City Fleet and Fire Department vehicle tires and services. The contract term for Daniel’s Tire Service and Parkhouse Tires was for one (1) year beginning Fiscal Year 2016/2017 with four (4) optional one (1) year extensions expiring on June 30, 2021.
ANALYSIS/DISCUSSION
On February 2, 2021, the City’s Procurement Department released RFB No. 21-022 for Tires and Roadside Service Calls and published the Notice of Inviting Bids in the San Bernardino County Sun, on the City of Rialto Website, and on PlanetBids.com. A copy of the RFB is included as Attachment 1.
On February 16, 2021 the City received three (3) bids, the bid abstract is included as Attachment 2.
Border Tires was only able to provide a portion of the required tires within their bid thus, making Daniel’s Tire Service the fully responsive bidder for the purchase of Goodyear Branded tires and Parkhouse Tires, Inc. the responsive bidder for the purchase of Firestone Branded tires and related roadside services.
Rialto Municipal Code (RMC) 2.47 and Ordinance 1496, as approved by City Council on December 13, 2011, describes the local purchasing preference and states that the “City Council, may apply a reduction of up to five percent (5%) of the amount of the original bid submitted by each qualified local business…” In such circumstance, the objective is to ascertain whether the original bid of a qualified local business can become the low bid or “Preference bid” among all bids submitted by reducing the original bid. In compliance with the Ordinance, this reduction would be for evaluation purposes only and would not be the contract price.
Staff reviewed the bid and references and determined that Daniel’s Tire Service is a properly licensed and qualified bidder. A copy of Daniel’s Tire Service Disclosure Statement and Letter of Certified Authorized Goodyear Dealer and Re-treader is included as Attachment 3.
Staff reviewed the bid reference and determined that Parkhouse Tire, Inc. is a properly licensed and qualified bidder. A copy of the Disclosure Statement for Parkhouse Tire, Inc. is included as Attachment 4.
Staff recommends that City Council approve a Multi-Year Services Contract to Daniel’s Tire Service in the amount of $55,000 annually for Goodyear Branded tires, and approve a Multi-Year Services Contract to Parkhouse Tires, Inc., in the amount of $45,000 annually for Firestone branded tires. Pursuant to the Services Contract, the initial term is one (1) year with the option for four (4) additional one (1) year extensions based upon satisfactory performance. A copy of the Services Contract for Daniel’s Tire Service and Parkhouse Tires, Inc is included as Attachment 5 & 6, respectively.
ENVIRONMENTAL IMPACT
Approval of the proposed action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW:
The City Attorney has reviewed and supports the staff report and Services Contract.
FINANCIAL IMPACT:
Operation Budget Impact
Subject to the City Council’s final adoption of the 2021/2022 Fiscal Year budget, funds will be available in the Internal Service Fund Inventory Account No. 690-132-0000-0000 for the City fleet, for a total contract of not to exceed amount of $55,000 annually for Daniel’s Tire Service and not to exceed amount of $45,000 annually for Parkhouse Tires, Inc.
Annually, sufficient budget will be appropriated in each fiscal year’s budget to accommodate the continued purchase of new tires and related services.
The Finance Department accounts for the initial purchase of tires in an inventory account. The costs are allocated to the respective departments as items are used, charging the cost to the accounts shown in Table 1 below. Sufficient budget will be available, subject to the City Council’s final adoption of the 2021/2022 Fiscal Year budget, in the respective accounts to charge costs as they are incurred during Fiscal Year 2021/2022.
Table 1
|
Department |
Account No. |
|
City Administration |
010-500-1148-2110 |
|
Business Licensing |
010-500-2153-2110 |
|
Purchasing |
010-500-2159-2110 |
|
City Clerk’s Office |
010-500-3150-2110 |
|
Rialto Network |
010-500-3155-2110 |
|
Community Compliance |
010-500-4295-2110 |
|
Fire Department |
010-500-5150-2110 |
|
Police Department |
010-500-6150-2110 |
|
Public Works - Building Maintenance |
010-500-7302-2110 |
|
Public Works - Park Maintenance |
010-500-7304-2110 |
|
Public Works - Street Maintenance |
010-500-7305-2110 |
|
Public Works - Traffic Safety |
010-500-7308-2110 |
|
Building Services |
010-500-4150-2110 |
|
Engineering |
010-500-4265-2110 |
Capital Improvement Budget Impact
There is no impact to the Capital Improvement budget with this request.
License
A Business license application and payment of a Business License tax at the Professional Service rate in the amount of $129.00 will be paid by Daniel’s Tire Service and Parkhouse Tires, Inc., prior to execution of the Purchase Order.
RECOMMENDATION:
Staff recommends that the City Council:
1. Approve a Multi-Year Services Contract to Daniel’s Tire Service in the amount of $55,000 annually for Goodyear Branded tires, for a term not to exceed five (5) years;
2. Approve a Multi-Year Services Contract to Parkhouse Tires, Inc., in the amount of $45,000 annually for Firestone branded tires for a term not to exceed five (5) years;
3. Authorize the Issuance of annual Purchase Order during the term of each Services Contract; and
4. Authorize the City Manager to execute all necessary documents.